ARTICLES, DISCUSSIONS, ANALYSES, REVIEWS
FAN VIOLENCE AS A LIMITING FACTOR OF DEVELOPMENT OF INSURANCE MARKET IN SPORTS
In this work, the author has analysed the negative impact of fan violence
on functioning and development of the insurance market in the area of sports.
The initial hypothesis is that each insurance contract is significantly characterized
as aleatory, since the obligation of the Insurer to pay indemnity depends on the
occurrence of the insured event/risk. According to the opinion of the author,
in those sports markets where the acts of violent behaviour at sports events
frequently occur, the aleatory element of an insurance contract disappears and so
does the theoretical possibility that the conclusion of insurance contracts can be a
profitable business for insurers. To prove this hypothesis, the author mentioned the
condition and practice in several countries of the world and analysed the current
situation in the Republic of Serbia.
The final part of the text sets forth the view that, due to the problem of fan violence, the organizers of sports events do not invest in the development of sports infrastructure and its modern equipment, which reduces the value of eventually signed contracts on the insurance of sports facilities and negatively affects the development of the insurance market. In addition, it is pointed out that fan violence brings about the fall of the attendance at the sports competitions, as spectators begin to shy away from possible negative consequences that may occur at sports events and prefer to stay at home and watch TV broadcasts of sports competitions, instead of coming to stadiums. This, on the one hand, reduces the potential of the insurance market in sports (as the number of spectators to be insured is reduced) but, on the other hand, such reduced number of spectators further motivates the organizers of sports events and owners of sports facilities to invest in the reconstruction and possible expansion of these facilities, and later in taking out the insurance coverage for them.
Key words: sports events, fan violence, material damage, insurance, spectators, property and the aleatory element of contracts.